30th Jun 2020 14:36
(Alliance News) - Robinson PLC on Tuesday reinstated its dividend as it has "gained greater clarity on the impact on the business" from the Covid-19 pandemic.
The Chesterfield, England-based plastic and paperboard packaging company also said that it has recorded 5% year-on-year sales growth in the first half of 2020 despite challenging market conditions.
Margins have maintained the momentum experienced in the second half of 2019 and operating costs were at a similar level with a consequent increase in first half operating profits, the company added.
Shares in Robinson were up 3.5% at 90.00 pence each in London on Tuesday afternoon.
Chair Alan Raleigh, in his annual general meeting statement, said: "The Covid-19 pandemic has presented both challenges and opportunities for the business. End consumer demand for the products for which we supply packaging has resulted in some ups and down with a net positive effect on sales.
"The pandemic has, however, slowed down progress with selling our surplus properties due to the inability to conclude site inspections during the lockdown and volatility in the UK housing sector. Consequently, we expect delays of at least 6 months to previously indicated timescales."
Robinson has declared a first interim dividend of 3.5p per share. In March, the company had decided against declaring a final dividend for 2019 to save cash because of the uncertainties facing the business due to the Covid-19 pandemic.
By Tapan Panchal; [email protected]
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